“…an administrator, provisional liquidator, conservator, receiver, trustee, custodian, or other similar official for it or for all or substantially all its assets.” Sound like the Car Czar to anyone? Yes. Us too. Know what else it sounds like? The 2003 ISDA credit derivatives definition sufficient to trigger CDS default provisions. Does the mere appointment of the Car Czar trigger them? Should it?
Bank of America has been back-and-forthing on this for a pair of days now, first opining, “yes,” then “no” to the question of the week.
There is much wrangling about the details of the bailout bill wording and its impact on this question, but, at least to our way of thinking, the spirit of things, no matter the exact text, sounds more than enough like an “administrator, provisional liquidator, conservator, receiver, trustee, custodian, or other similar official” to make quibbling over the details somewhat pointless. Of course, this will be sidestepped without even the slightest hesitation.
We are the bailout. Resistance is futile.
CDS may be triggered by autos czar, says Bank of America [Creditflux via Alea]
Autos bailout bill unlikely to trigger CDS contracts, says Bank of America [Creditflux via Alea]